The high number of foreclosures has sent home ownership tumbling. People have been losing their homes in record numbers, but they have to live somewhere. So while foreclosures are high, the real estate rental market is Hot.

Who looks for money making opportunities? Investors!

Now, high money institutions like hedge funds, university endowments, and pension funds have entered the real estate rental market. They are buying up foreclosures and working with local companies to find renters for these properties.

This trend will help stabilize the residential real estate market and return a handsome profit to investors when the market rebounds.

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It is still difficult to buy, unless you have cash. Cash is King in Real Estate today. Sellers have been stuck for years, unable to sell even after reducing their home’s price over and over again. A cash buyer comes along and sellers are willing to slash their prices even more to simply have the option of moving on.

Another reason cash is king in real estate today is due to all the foreclosures. Property owners are angry and desperate. The property they bought in 2005 or 2006 is suddenly worth half of what they paid, if they are lucky. Maybe they lost their job on top of it and now can’t pay that high mortgage. So they are forced out of their dream home.

What happens next isn’t pretty. Home owners in desperation are selling everything they own, including the property’s kitchen sink to get  enough money to move and rent something else.

When a kitchen has been gutted, including cabinets, counter tops and the kitchen sink, a lender will not lend on it. Plus, the foreclosing bank has no desire to fix anything. After all, they’ve already lost money on the house. So the only way to sell a gutted house is “cash only”. If you have cash, you have the power in this market, Cash is King.

More Foreclosures to Come

Lenders were slow to put all the foreclosures on their books into the market. One of the main reasons was the Robo Signer debacle. With that behind them, banks are planning to start pushing these foreclosed homes onto the market to clear their books.

Sell Your Property Now

Now is the time to sell your property. Getting these foreclosures to market will take months. Since sales of foreclosures are now being factored in to appraisals, you want to try and sell before they saturate the market.

South Florida Real Estate

South Florida Real Estate has been especially hard hit, but foreign investors are taking note of the low prices and buying. To sell your home with an honest, hardworking broker in South Florida Contact:

Timothy P Smith PA, Real Estate Broker

954-370-7291

It is very important if you are leaving your home for any of these reasons to get the lender to agree, in writing, not to seek a deficiency judgment or release you from the lien.

If the lender refuses to release you from the lien, there are ways to avoid a deficiency judgment. One way is to file for bankruptcy.

For more information on how to avoid a deficiency judgment, contact a foreclosure or bankruptcy attorney.

Lenders in essence are seeking to recoup what they lost. For example, if you buy a home for $100,000 and obtain a mortgage for $80,000 but the property drops in value to $50,000 and you convince the bank to take a deed in lieu of foreclosure, the bank then sells the property for $50,000 taking a loss of $30,000 – the difference between the loan amount and the sales price. The bank has a set period of time, in Florida it is 5 years, where they can file a Deficiency Judgment against the homeowner for the $30,000 loss.

Deficiency Judgments can be filed against homeowners in foreclosure cases, short sales and deed in lieu. If you are facing defaulting on your mortgage, it is important to make sure the lender agrees not to file a deficiency judgment and get it in writing.

It is worth hiring a lawyer if you have any doubts at all.